Free cash flow remains deeply negative, with the firm burning through $1.2 million in 2026Q1 alone, highlighting a total dependence on external capital to fund research.
| Cash from Operations | -8.11M | -8.52M | -8.35M | -8.21M | -8.01M | -6.14M | -4.35M | -2.79M | -1.61M | -216.82K | -18.49K | -13.5K | -15.27K |
| Operating CF Margin % | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating CF Growth % | -25110.64% | -2.04% | -1.74% | -2.48% | -30.4% | -41.26% | -55.67% | -73.46% | -642.56% | -1072.7% | -36.94% | 11.57% | - |
| Net Income | -13.46M | -12.88M | -9.83M | -9.29M | -10.08M | -7.44M | -4.65M | -2.17M | -2.34M | -234.89K | -29.69K | -15.24K | -15.27K |
| Depreciation & Amortization | 54K | 146K | 0 | 0 | 0 | 0 | 500 | 510 | 282 | 600 | 0 | 0 | 0 |
| Stock-Based Compensation | 917K | 1.14M | 818K | 1.02M | 2.46M | 1.53M | 377.77K | 425.11K | 290K | 3.33K | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.01M | 0 | -600 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.1M | 1.32M | -279K | -641K | -211K | 7K | -29.5K | 100K | 0 | 600 | 0 | 0 | -14.73K |
| Working Capital Changes | 48.73K | 1.75M | 937K | 703K | -172K | -242K | -41.28K | -140.02K | 443.19K | 14.14K | 11.2K | 1.74K | 14.73K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -416.07K | 1.59M | 480K | 273K | 23K | -3K | 127.98K | -180.41K | 500.7K | 15.64K | 11.2K | 1.74K | 0 |
| Cash from Investing | -62K | -62K | 7.77M | 3.51M | 2.96M | -3.44M | 0 | -1.5M | -845 | 0 | 0 | 0 | 0 |
| Capital Expenditures | -261.5K | 0 | 0 | 0 | 0 | 0 | 0 | -1.5M | -845 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 410.5K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 17.73M | 6.87M | 112K | 567K | 0 | 14.11M | 1.98M | 8.38M | 1.39M | 785.35K | 5.05K | 15.8K | 30K |
| Debt Issued (Net) | 1.21M | 584K | 0 | 0 | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 16.76M | 6.28M | 112K | 567K | - | - | - | - | - | - | - | - | - |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -108 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -242K | 0 | 0 | 0 | 0 | 6.01M | 3.15K | 1.05K | 1.84K | 42.67K | 5.05K | 0 | 0 |
| Net Change in Cash | 9.53M | -1.74M | -477K | -4.07M | -5.27M | 4.49M | -2.28M | 4.09M | -235.35K | 569.18K | -13.44K | 2.3K | 14.73K |
| Free Cash Flow | -8.11M | -8.52M | -8.35M | -8.21M | -8.01M | -6.14M | -4.35M | -4.29M | -1.61M | -216.82K | -18.49K | -13.5K | -15.27K |
| FCF Margin % | - | - | - | - | - | - | - | - | - | - | - | - | - |
| FCF Growth % | -32.15% | -2.04% | -1.74% | -2.48% | -30.4% | -41.26% | -1.26% | -166.53% | -642.95% | -1072.7% | -36.94% | 11.57% | - |
| FCF per Share | -10.98 | -3.62 | -0.86 | -0.92 | -5.65 | -9.87 | -35.18 | -59.29 | -37.83 | -5.96 | -0.58 | -0.42 | -1.19 |
| FCF Conversion (FCF/Net Income) | 0.60x | 0.66x | 0.85x | 0.88x | 0.79x | 0.83x | 0.93x | 1.29x | 0.69x | 0.92x | 0.62x | 0.89x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | - |
| Taxes Paid | 0 | 0 | 0 | 0 | - | - | - | - | - | - | - | - | - |
Imminent liquidity and dilution
As reported in financial statements, Artelo's operating cash flow consistently trails net losses, with the OCF/NI ratio fluctuating wildly between 0.00 and 1.18 over the last ten quarters, suggesting that accruals and non-cash adjustments provide little insight into the underlying reality of the company's cash-consuming clinical operations.
The lack of a stable relationship between net income and operating cash flow reflects the erratic nature of clinical trial spending rather than operational efficiency. Investors should monitor these swings as they indicate that cash outflows are driven by external research milestones rather than predictable business cycles.
Based on the provided quarterly data, Artelo's free cash flow remains deeply negative, with the company burning through $1.2 million in 2026Q1 alone, a trend that underscores the firm's total dependence on external capital to fund its ongoing research and development pipeline.
The absence of positive free cash flow is expected for a pre-revenue biotech, yet the magnitude of the burn relative to the reported $600,000 cash balance warrants extreme caution. This trajectory suggests that the company is nearing a critical juncture where operational survival depends entirely on the ability to secure further dilutive financing.
According to recent SEC filings, Artelo's working capital changes are highly inconsistent, swinging from a $1.1 million inflow in 2026Q1 to an $842,300 outflow in 2025Q3, which likely reflects the timing of vendor payments and clinical trial site obligations rather than operational working capital efficiency.
These fluctuations in working capital appear to be a byproduct of managing sporadic research expenses rather than a deliberate strategy to optimize cash cycles. The volatility suggests that management is likely prioritizing the settlement of critical clinical liabilities as cash becomes available, which may lead to lumpy cash flow profiles.
Based on reported figures, the cash flow statement obscures the true cost of operations by failing to fully capture the impact of stock-based compensation, which reached $432,000 in 2025Q3, effectively acting as a non-cash expense that masks the true economic cost of talent retention.
While stock-based compensation is a standard tool for cash-strapped biotechs, its consistent presence suggests that the company is relying on equity to preserve its limited cash reserves. Analysts should interpret these adjustments as a form of hidden dilution that is not fully reflected in the headline cash burn metrics.
Quick answers to the most common questions about buying ARTL stock.
Artelo Biosciences, Inc. (ARTL) generated $-8.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Artelo Biosciences, Inc. (ARTL) reported negative free cash flow of $8.5M in 2025, indicating capital requirements exceeded cash from operations.
Artelo Biosciences, Inc. (ARTL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.